Public Procurement and its Impact on Financial Indicators of Companies in the Construction Sector in Slovakia

Verejné obstarávanie a jeho vplyv na finančné ukazovatele firiem v sektore stavebníctva na Slovensku

Zuzana Špinerová

Acta Oeconomica Pragensia, 2014, vol. 2014, issue 3, 61-76

Abstract: The aim of this article is to examine whether there exists a relation between the participation in execution of public contracts and financial indicators of companies. The issue is analysed using data on companies involved in the construction sector of the Slovak Republic. Hypotheses that the participation of companies in public contracts positively affects their financial indicators are tested using a quantitative approach. The results of the regression analysis indicate that companies which contribute to realisation of public contracts achieve more favourable values of profitability ratios compared to companies without public contracts. Nevertheless, the higher profitability may stem from higher efficiency of those companies or from the presence of inefficiency in the procurement process. With respect to the main objective and the extent of the presented analysis, it is not possible to assess which option is more plausible.

Keywords: Public procurement; Profitability; Construction sector; Slovak Republic (search for similar items in EconPapers)
JEL-codes: H40 H57 M21 (search for similar items in EconPapers)
Date: 2014
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DOI: 10.18267/j.aop.437

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